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Global Business Strategy: Transnational Strategy And International Strategy

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1 INTRODUCTION
1.1 WHAT IS TRANSNATIONAL STRATEGY
1.1.1 By Definition
An international business structure where a company's global business activities are coordinated via cooperation and interdependence between its head office, operational divisions and internationally located subsidiaries or retail outlets. A transnational strategy offers the centralization benefits provided by a global strategy along with the local responsiveness characteristic of domestic strategies. (Business Dictionary)
1.1.2 Explanation
The Transnational strategy is shortened term for global strategy, the international strategy and the multinational strategy. Essentially each of the mentioned strategies allow organization to do business at oversea locations. The transnational …show more content…

Transnational strategy allows from mass customization; meaning that the basic processes are uniform but can be customized to individual countries. Transnational strategies also facilitate global e-commerce and customer service, better resource management, and streamlined manufacturing processes. These three items can help boost profits for companies and create competitive advantages. Some of the successful examples of transnational strategies are implemented by several airlines, and the prominent are Benetton and American …show more content…

MNE management should integrates its global business operations through cooperation and interdependence among its headquarters, operations and its information technologies as globalizing of MNE becomes the norms, as the companies begins to compete for same resources on both the regional and global scales.
One of transnational strategy features a joint innovation by MNE corporation leds to development of standardized, flexible products and services that can capture markets on local and universal level enabling the company to successfully develop on global set.
Transnational strategy must have a proper structure as transnational strategy is hybrid strategy of global and multidomestic strategies that emphasizes on features of global demographic structure and global product divisional structure. Though the structure is somewhat contradictory such as the structure should be centralized as well as decentralized, integrated and as well as nonintegrated, formalized and also informalized, the company tends to perform better than other company who have adopted multidomestic or global

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